Betfair are to give customers the opportunity of reducing the the commission they charge on winning exchange bets to 2% in what could be seen as a concerted effort to stave off increased competition from the likes of Betdaq and Matchbook, who already run a 2% commission model.
The switch, available to both new and existing account holders, is available through the new feature’ My Betfair Rewards,’ which is divided into three separate packages.
The 2% commission offer is part of the’ Basic’ bonus plan, but consumers will no longer qualify for’ Best Odds Guaranteed ‘ rates on the sportsbook if they choose to do so.
Customers will also give up access to the famous Betfair Cash Race and any other promotions.
The lowest commission rate may not automatically appeal to everyone and the attractiveness of Betfair’s numerous promotions through’ Rewards+’ may appeal much more to the casual bettor who may be willing to sacrifice 8% of their gross winnings if it means they have full access to sportsbook and casino promotions.
One of the package’s most attractive features is a 10% refund on all damages, but with new exchange providers constantly emerging, it doesn’t guarantee Betfair can see off the competition.
Although one of Betfair’s major advantages over its rivals is flexibility, particularly on in-run markets (although this has diminished somewhat in recent years), and this is a key factor for many bettors who regularly use exchanges.
Lack of flexibility on competing exchanges, including higher profiles such as Betdaq, has long been seen as the overwhelming reason why so many Betfair customers don’t go anywhere else, even though as a result they charge more in commission.
Therefore, this latest development undeniably improves the role of the only real behemoth in the exchange world and if it means more new accounts, which in effect will further boost volatility, then competing firms will face an uphill battle if they continue to compete with Betfair.